This bill proposes updates to the Arizona Revised Statutes regarding the use of escrow accounts by escrow agents. Under the current law, escrow agents are restricted to using funds in an escrow account solely for making payments as stipulated in a loan agreement. The new provisions would allow for exceptions where the loan agreement or related documents explicitly state alternative uses for the funds. Specifically, the bill introduces four scenarios where funds may be used differently: if the loan agreement specifies another purpose, if a deed in lieu of foreclosure states a different use, if parties negotiate a settlement that includes fund usage, or if an agreement allows for funds to address arrears.

Additionally, the bill includes a statement of legislative intent clarifying that the changes made by this act are meant to be clarifying in nature and do not alter the substantive law. The proposed section 6-834.01 would be added to the existing statutes, ensuring that the new language is integrated into the legal framework governing escrow agents while maintaining the integrity of current regulations.

Statutes affected:
Introduced Version: 6-834.01
House Engrossed Version: 6-834.01
Senate Engrossed Version: 6-834.01
Chaptered Version: 6-834.01